Correlation Between Guangdong TianYiMa and Guangzhou KDT
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By analyzing existing cross correlation between Guangdong TianYiMa Information and Guangzhou KDT Machinery, you can compare the effects of market volatilities on Guangdong TianYiMa and Guangzhou KDT and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guangdong TianYiMa with a short position of Guangzhou KDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong TianYiMa and Guangzhou KDT.
Diversification Opportunities for Guangdong TianYiMa and Guangzhou KDT
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Guangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong TianYiMa Information and Guangzhou KDT Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KDT Machinery and Guangdong TianYiMa is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guangdong TianYiMa Information are associated (or correlated) with Guangzhou KDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KDT Machinery has no effect on the direction of Guangdong TianYiMa i.e., Guangdong TianYiMa and Guangzhou KDT go up and down completely randomly.
Pair Corralation between Guangdong TianYiMa and Guangzhou KDT
Assuming the 90 days trading horizon Guangdong TianYiMa Information is expected to under-perform the Guangzhou KDT. In addition to that, Guangdong TianYiMa is 1.92 times more volatile than Guangzhou KDT Machinery. It trades about -0.12 of its total potential returns per unit of risk. Guangzhou KDT Machinery is currently generating about -0.07 per unit of volatility. If you would invest 1,820 in Guangzhou KDT Machinery on October 30, 2024 and sell it today you would lose (88.00) from holding Guangzhou KDT Machinery or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong TianYiMa Information vs. Guangzhou KDT Machinery
Performance |
| Timeline |
| Guangdong TianYiMa |
| Guangzhou KDT Machinery |
Guangdong TianYiMa and Guangzhou KDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong TianYiMa and Guangzhou KDT
The main advantage of trading using opposite Guangdong TianYiMa and Guangzhou KDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong TianYiMa position performs unexpectedly, Guangzhou KDT can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangzhou KDT will offset losses from the drop in Guangzhou KDT's long position.| Guangdong TianYiMa vs. Namchow Food Group | Guangdong TianYiMa vs. Youyou Foods Co | Guangdong TianYiMa vs. HaiXin Foods Co | Guangdong TianYiMa vs. CITIC Metal Co |
| Guangzhou KDT vs. Suzhou Oriental Semiconductor | Guangzhou KDT vs. Ingenic Semiconductor | Guangzhou KDT vs. Shanghai V Test Semiconductor | Guangzhou KDT vs. Cansino Biologics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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